What it does
The Accumulation/Distribution line, developed by Marc Chaikin, is a cumulative volume indicator that estimates whether money is flowing into or out of an instrument. Each bar's Money Flow Multiplier, computed as ((close minus low) minus (high minus close)) divided by (high minus low), scales that bar's volume; the result is added to a running total. Closes near the high add most of the volume as accumulation, closes near the low subtract it as distribution.
How to add it
Click Indicators (ƒx) in the header.
Search “Accumulation/Distribution” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Trend confirmation: a rising A/D line alongside rising price shows volume supporting the advance; both making new highs together is healthy.
- Bearish divergence, where price makes a new high but A/D fails to, warns that the rally lacks volume backing; bullish divergence at lows works in reverse.
- A/D breaking out of its own range before price does can foreshadow the price move, since accumulation often precedes markup.
- Focus on the line's slope and divergences, not its absolute level, which depends on where the cumulative sum started.
Inputs
This indicator has no configurable inputs — it works out of the box.
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| Accum/Dist Line | line | #2196F3 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 0 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- Hide the study from the legend eye instead of removing it when you only want it out of the way temporarily.
- Merge multiple oscillators into one pane from the legend ⋯ menu to compare them on a shared axis.
- Double-click the plot to open settings directly, skipping the legend hover.
Watch out for
- It ignores gaps: a stock that gaps down heavily but closes mid-range can show accumulation on a day holders lost money.
- It requires reliable volume data and, being cumulative, can drift in one direction for long stretches, making divergences slow to resolve.